Benchmark Research has maintained its Buy recommendation on Zillow Group (NASDAQ: ZG) and held its price target at $110.00. The firm reviewed Zillow’s most recent results and guidance and concluded that, despite headline misses on earnings before interest, tax, depreciation and amortization (EBITDA), the company’s core performance may be stronger once legal costs are stripped out.
Benchmark noted that Zillow’s reported fourth-quarter EBITDA and the company’s guidance for the first quarter both came in below consensus forecasts. The research house said that if legal expenses are added back to EBITDA, the company’s results would be at or above the analyst consensus.
In its assessment of Zillow’s outlook, Benchmark called out several unexpected items. The firm pointed to incremental headcount and marketing expenses expected in the first half of 2026 as unanticipated cost pressure. At the same time, Benchmark highlighted constructive operational signs, including a company projection of 30% rentals growth for the year and a modest acceleration in Residential segment revenue.
Benchmark also cited comments from Zillow management indicating that consensus EBITDA estimates for the full year were reasonable, even after accounting for a roughly 100-basis-point headwind from legal expenses. Benchmark interpreted management’s stance as reinforcing its view that underlying EBITDA could outperform consensus once the impact of legal costs is considered.
The firm acknowledged that investor sentiment may remain muted until there is either time for sentiment to normalize or a positive resolution to outstanding legal matters. Despite that caveat, Benchmark described Zillow as "one of the most attractive names" in its coverage at current share-price levels, pointing to the company’s progress integrating artificial intelligence and to what it sees as relative insulation from AI-driven disintermediation.
Separately, Zillow reported fourth-quarter results in which revenue exceeded expectations while profitability fell short of consensus. Within the company’s segment performance, For Sale revenue rose 11% year-over-year, and Rentals growth in the quarter improved by 3 percentage points to 45%. Zillow’s Residential revenue showed a slight acceleration, which Benchmark linked in part to the expansion of the company’s Enhanced Markets offering.
On legal developments, Zillow recorded a favorable court ruling in its ongoing dispute with Compass, with a judge permitting Zillow to enforce its listing rules. That decision was noted positively by analysts at Bernstein, which reiterated an Outperform rating and a $95.00 price target for Zillow.
Not all brokerages shared the same outlook. Cantor Fitzgerald and Canaccord Genuity both trimmed their price targets, citing higher-than-expected legal costs. Cantor Fitzgerald set a $56.00 target while maintaining a Neutral rating; Canaccord Genuity lowered its target to $72.00 and assigned a Hold rating. Evercore ISI continues to rate Zillow as Outperform and expects the company to post favorable outcomes in its upcoming earnings report.
Context limitations: The assessment above reflects the information communicated by Benchmark, Zillow management and other brokers as stated in the company’s recent reports and the firms’ public comments. No additional projections or events beyond those reported were assumed for this analysis.